The Strategist

Tesla to reduce its solar panel business

06/22/2018 - 14:55

The manufacturer of electric vehicles Tesla Inc. will partially curtail its business of selling and installing solar panels, which was bought two years ago. This is reported by Reuters with reference to internal documents of the company and its former and current employees.

d_vdm via flickr
d_vdm via flickr
Last week, Tesla announced a reduction of about 9% of employees, as the company seeks to reduce costs and become profitable.

The company said that the cuts in the energy business are part of an overall staff reduction plan.

The division for the sale and installation of solar panels was once the company SolarCity. Tesla closed the acquisition of SolarCity for $ 2.6 billion in 2016.

It follows from internal documents of the company that about 60 branches will be left open. It is planned to close 14 branches in California, Maryland, New Jersey, Texas, New York, New Hampshire, Connecticut, Arizona and Delaware (another list indicates only 13 branches to be closed).

Tesla declined to comment on which branches are planned to close and how many employees will lose their jobs.

As of the end of 2015, SolarCity employed about 15 thousand people, but since then, thousands of employees have been laid off.

Tesla also intends to cease cooperation with Home Depot building materials stores chain, which, according to former and current employees of the company, provided about half of its sales of solar panels. Instead, Tesla wants to sell the panels through its own stores and the Internet.

A spokesman for Home Depot, Stephen Holmes, said that the retailer's contract with Tesla will continue until the end of the year. He added that Home Depot will continue to cooperate with Tesla's competitor, Sunrun.

Recall that Tesla completed the first quarter with a record loss of $ 709.6 million, or $ 4.19 per share, compared to $ 330.3 million, or $ 2.04 per share, for the same period a year earlier.

Adjusted loss (excluding one-time incomes and expenses) was $ 568 million, or $ 3.35 per share, compared to $ 215 million, or $ 1.33 per share, a year earlier. At the same time, the revenue increased from $ 2.7 billion to $ 3.41 billion.

During the conference call, Elon Mask, the company's chief executive, said that Tesla plans to reach a profitable level in the second half of this year.